As far as I can tell, the idea was basically made popular by movies [1], and there is no science behind it. All the science I know of points the other way -- simulating anything is incredibly hard and slow. It requires approximations and shortcuts to make it work for specific cases, and it doesn't work in the general case.
(Maybe some alternative model like quantum computation will be different, but we're MUCH much further there. I think "adding two small numbers" is still an issue for state of the art quantum computers.)
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Here's a nice example from a few days ago, trying to represent even a tiny part of the human brain in a computer:
https://news.ycombinator.com/item?id=27362883
[1] I think this is more literally true than you might expect; IIRC the published papers in philosophy liberally reference The Matrix, maybe because it attracts readers.